Vale closes the third quarter with a net income of US$ 2.2 billion and debt reduction

Vale announced on this Thursday, October 26th, its financial result for the third quarter of 2017. Among the positive highlights of the period is a net income of US$ 2.2 billion and the increase of 54% in cash flow generation, compared to the last quarter. The adjusted EBITDA was of US$ 4.2 billion. The result led our debt to fall to US$ 21.1 billion. “The quality of those results was outstanding”, comments our CFO, Luciano Siani Pires, in the video below.

According to the executive director, the good cash flow generation results are due to four factors:

Price increases in iron ore, copper and nickel.

Price realization of Vale’s high grade 65% iron ore, in Carajás.

Cost reductions.

High production volumes.

The operational performance was quite positive. Vale achieved a production record in iron ore, coal and copper in Salobo, Pará. In the case of iron ore, the S11D mine ramp-up played a major part in the strong result. "We are paving the way for better governance, better decisions and an even better company for our shareholders in the future”, states Siani.

New Market

During a Special Meeting held last Wednesday, on October 18th, Vale overcame the last remaining challenge to begin the accession process of the company to the New Market, the highest segment of B3 in terms of corporate governance. At the time, the conversion of its remaining preferred shares into common shares and the election of two independent members on its Board of Directors was approved. “This will further improve the governance of our company so that we can deliver even better results”, said the director.

Webcasts

This Thursday at 11 a.m., the CEO Fabio Schvartsman and the executive directors shall participate in a conference with investors and journalists. Access the links below.

Watch the full video and learn more about our results in the infographic below.